Steel City Re, an overseas advisor to Lloyd’s Tokio Marine Kiln, is the exclusive provider of parametric reputation risk insurances and advisory services using a risk management framework informed by behavioral economics.
We provide reputation underwriting services and insurance products globally to hundreds of public and private companies, providing diverse reputation governance, control and risk transfer solutions.
Our roots trace back to several parallel explorations of intangible asset valuation, management, monetization, and risk transfer beginning in the late 1990’s. Some of these efforts were reflected in the activities of The Patent & License Exchange, an award-winning dotcom-era market for technology real options, aka patents, whose international expansion was memorialized in a Harvard Business School case study. Other efforts were reflected in the programs and publications of the Intangible Asset Finance Society, which were memorialized in the books, Mission Intangible (IAFS: 2010) and Reputation, Stock Price and You (Apress: 2012).
Dread of reputation risk permeates boards’ concerns about governance, counsels’ about compliance, institutional investors’ about equity risk, bond raters’ about credit risk, and others about ESG risk. Steel City Re was formed to adapt maturing intellectual property estimating reputation premium to combat the dread of reputation risk and help companies insure, manage, and arbitrage reputation risk. We began capturing data weekly on 7800 public companies, developing equity indexes based on companies’ reputational metrics, and offering these data to Wall Street, Concurrently, we began offering analytical and consulting services to the corporate market based on the same reputation value and risk ontology.
In 2012, we were approached by Tokio Marine Kiln, a Lloyd’s syndicate, which provided the initial risk-bearing capital that enabled Steel City Re to use those same reputation value metrics and analytic tools to underwrite and provide reputation insurance products to companies that met its objective mathematical criteria for superior reputation risk management.
Today we help businesses develop robust comprehensive reputation risk management systems. Through our advisory arm, we help deploy state-of-the-art reputation risk governance and enterprise risk management solutions. Our risk financing and risk transfer arm provides unparalleled pricing and underwriting support for insurance captives. Our parametric risk transfer solutions in collaboration with the Lloyd’s syndicate, Tokio Marine Kiln, provide value-enhancing third-party warranties, in the form of insurance, that boost stakeholders’ confidence in companies’ leadership, governance and risk management practices.
In addition, our nearly 7 million Reputation Value Metrics—synthetic measures of reputation value gathered over 20 years—continue to empower third-party investment strategies and equity indices.
We announced 4 March 2021 that equity portfolios built algorithmically on 1,000 weeks of Reputational Value Metrics have over 15 years outperformed both the net asset value (NAV) of MSCI USA ESG Select ETF, one of the oldest ESG funds, and the price returns of Berkshire Hathaway, a firm chaired by reputation-savvy Warren Buffet.
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